Growth of Global Methanol Market Driven by Applications in Chemical and Energy Sector

July 2708:002017

Growth of Global Methanol Market Driven by Applications in Chemical and Energy Sector

The global methanol market has seen rapid growth, owing to its increasing applications in energy and chemical sectors. Some of the major derivatives of methanol include formaldehyde, acetic acid, gasoline and TAME/MTBE.

According to IMARC Group’s new report, titled “Methanol Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2017-2022”, the global methanol market has reached a value of US$ 43 Billion in 2016, exhibiting a CAGR of more than 22% during 2009-2016. Methanol, also known as wood alcohol, is a colourless liquid produced via the reaction of syngas and hydrogen in the presence of a catalyst. It is miscible in water, alcohol, ether, ketones and most other organic solvents. Although it is poisonous to human beings, methanol has diverse applications in a number of industries.

Highlights of the global methanol market:

Applications of methanol in the energy sector and its use in the production of chemicals are driving its demand.

Formaldehyde represents the largest end-use industry globally.

China is the largest global producer of methanol and accounts for about half of the total production.

In the energy sector, methanol is used to manufacture Dimethyl ether (DME), a clean fuel that can be used as a substitute to propane. It is also used to manufacture Methyl tert-butyl ether (MTBE), an anti-knock agent and oxygenate in gasoline engines. Moreover, it is an important component of biodiesel and is used as an alternative fuel for internal combustion. In the chemical sector, it is used to produce formaldehyde and acetic acid, which are further used in the production of adhesives, paints, plywood, solvents, foams, plastics, explosives, antifreeze, etc. Other applications of methanol are in fuel cells, gasoline blending, alcohol denaturation, wastewater treatment, methanol-to-olefins and methanol-to-gasoline conversions. Owing to the extensive applications of methanol in energy and chemical sectors, the global methanol market is further expected to reach a value of US$ 68 Billion by 2022, growing at a CAGR of around 8% for 2017-2022.

On the basis of end-use, formaldehyde represents the largest industry, followed by gasoline, acetic acid, chloromethane, Dimethyl Ether and TAME/MTBE. On the basis of region, China is the largest and fastest growing market in terms of global production. Other important regions include Asia-Pacific (excluding China), North America, Latin America, Europe and Middle East & Africa. Some of the key players operating in global methanol market are Methanex Corporation, Southern Chemical Corporation(SCC), Saudi Arabian Basic Industries Corp (SABIC), Mitsubishi Gas Chemicals (MGC), Zagros Petrochemical Company, Mitsubishi Gas Chemical, Petronas and Mitsui.

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